Attica Bank S A : - Financial Results of Q3 2019

Athens, 17/12/2019

Q3 2019 Financial Results

• Increase of deposits by 18.3% yoy
• Net Loans / Deposits Ratio amounted to 61.5%, marginally decreased by 8 bps compared to 31.12.2018 and significantly lower compared to 30.06.2018 (by 34 bps)
• Net Loans decreased by 3% compared to 31.12.2018
• Total Assets increased by 2.8% to €3,444 mln compared to 31.12.2018
• New financing and refinancing amounted to €75 mln
• Reduction of total operating expenses by 13.2% yoy
• NPE Cash Coverage Ratio: 32.2%
• Total Capital Adequacy Ratio: 15.0%
• Total Equity remained stable at €489 mln

Management Statement

Attica Bank's financial results for the third quarter of 2019 remain positive and is a confirmation of the continuous effort of the Bank for enhancing its profitability and the restoration of its balance sheet.

The Group, for another quarter, continued to improve its liquidity, as deposit balances increased by 18.3% compared to the comparative period of 2018. This led to a decrease in the loans to deposits ratio from 95.4% to 61.5% in one year.

With regard to new loans' balances, the first nine month period of 2019 new financing and refinancing amounted to approximately €75 mln showing that Attica Bank continues to expand its market position.

In terms of profitability, operating costs (excluding depreciation costs) decreased by 9% annually on a recurring basis. The constant decline in operating costs as well as significant gains from financial transactions offset the lower revenues during the third quarter.

The Bank's performance during the third quarter displays that the Bank has completely restored the depositors' confidence and continues to work so as to increase the loans' portfolio base. The acceleration of economic activity in correlation with the macroeconomic conditions are expected to boost domestic demand and therefore demand for capital.

The Board of Directors is confident that the Bank will achieve the business' objectives that has set for increasing the size of the Bank through the expansion of its products and the cost containment through a more efficient operation.

Key Points of the Balance Sheet

• Group's Total Assets amounted to 3.4 billion euros and its structure remained rather stable.
• Gross loans amounted to 1.8 billion euros while net loans amounted to 1.5 billion euros remaining at almost the same level as at 31.12.2018. New financing and refinancing for the period amounted to approximately 75 million euros.
• The accumulated provisions for impairment losses on loans and advances to customers stood at 268 million euros. For Q3 2019, the total provisions amounted to 18.5 million euros compising of provisions for impairment losses on loans and advances to customers amounted to 15.4 million euros and for FVTOCI financial assets portfolio of 8.3 million euros, while provisions for impairment on off balance sheet items and on other assets were reversed by 5.2 million euros.
• NPE ratio stands at 39.4% (2018: 33.5%) and NPE cash coverage ratio amounted to
  32.2% (2018: 34%) without taking into account any collaterals.
• Deposits amounted to 2.5 billion euros, up by 18.3% compared to 30.09.2018.
• Loans to Deposits ratio (after provisions) stood at 61.5% for the Group marginally lower compared to 31.12.2018 and significantly decreased compared to 30.09.2018 (95.4%). Loans to Deposits ratio (before provisions) for the Group amounted to 72.3% as at 30.09.2019 and appears to be lower compared to 31.12.2018 (80.9%).

All amounts in EUR thousands
	Q3 2019	FY 2018	EUR	%
Gross Loans & Advances to Customers	1,805,561	1,845,138	(39,577)	(2.1%)
Net Loans & Advances to Customers	1,537,222	1,592,144	(54,922)	(3.4%)
Financial Assets at fair value through other	922,261	909,288	12,973	1.4%
comprehensive income (FVOCI)
Tangible, Intangible Assets, Investment	158,247	139,922	18,325	13.1%
Property
Deferred Tax Assets	438,886	420,357	18,529	4.4%
Other Assets	387,883	288,795	99,088	34.3%
Total Assets	3,444,498	3,350,505	93,993	2.8%
Deposits form banks	290,194	424,649	(134,455)	(31.7%)
Deposits from customers	2,498,846	2,281,875	216,971	9.5%
Other Liabilities	166,073	153,085	12,988	8.5%
Total Liabilities	2,955,113	2,859,609	95,504	3.3%
Total Equity	489,385	490,897	(1,511)	(0.3%)
Total Liabilities & Equity	3,444,498	3,350,505	93,993	2.8%

Group's Efficiency

• Fee and Commission Income remained marginally unchanged compared to 30.09.2018 (reduced by 3%) and amounted to 10.4 million euros.
• Profit before taxes and provisions amounted to 2,539 thn euros, lower by 7.4 million euros compared to the comparative period (30.09.2018).
• Profit from Investment Portfolio amounted to a total of 7.7 million euros in the first nine month period of 2019, positively influenced by the gain raised from the sale of the Greek Government Bonds (including the relevant revolving result in the capital reserves).
• Personnel expenses decreased by 1.2% for the period under consideration compared to the comparative period.
• General Operating expenses display a decrease of 13.2% compared to the comparative period, if the expenses for rentals for the comparative period under IFRS 16 is excluded, while depreciation is higher compared to the comparative period.

All amounts in EUR thousands
	Q3 2019	Q3 2018	EUR	%
Net Interest Income	32,543	56,069	(23,526)	(42.0%)
Net Commission Income	3,285	4,389	(1,104)	(25.2%)
Total Operating Income	53,359	62,592	(9,233)	(14.8%)
Total Expenses	(50,820)	(52,630)	(1,810)	(3.4%)
Pre Provision Income	2,539	9,962	(7,423)	(74.5%)
Provisions for risks	(19,747)	(27,498)	(7,751)	(28.2%)
Allowance for Voluntary Retirement	0	(17,214)	(17,214)	-
Scheme
Results from associates	515	(3,154)	3,669	116.3%
Profit / (Loss) before taxes	(16,694)	(37,904)	(21,211)	(56.0%)
Income Tax	17,558	1,183
Profit / (Loss) after taxes	865	(36,722)

ATTICA BANK S.A.

Note: The Q3 2019 Financial Statements will be available on the Bank's website, www.atticabank.gron 17.12.2019.

This press release has been prepared solely for international purporses. Any projections in this press release is at the discretion of the recipients so as to evaluate the information provided to them, based on their personal will and excluding any responsibility of Attica Bank SA. Some of the statements contained in this press release may refer to future events and possible financial performance such as economic, financial, business or other market conditions. The recipients are cautioned not to rely too comprehensively on these forward- looking statements and to conduct their own research and analysis on the information contained in this press release before entering into any investment or other operation with a financial result. Attica Bank S.A. undertakes no obligation to update any statement contained herein and referred to in the future, unless required by the applicable law.

This material may not be copied, reproduced, distributed or transmitted to others at any time, in whole or in part, without the prior written consent of Attica Bank SA.